Every organization has a system in place which uses a predetermined formula to measure the performance and reward the employees accordingly. However, to determine whether the employees’ performance has improved, there is always a baseline performance that has already been established and is considered fair to all by the company management. Therefore, gainsharing, in most cases, is based on elements such as customer service, quality, and spending as well as company productivity. However, the gainsharing aspect is different from the focus on profitability in that the employees can control the measures used in gainsharing systems. The internal operations of a company cannot entirely control the profitability of the company, but the gainsharing elements such as quality and quantity can be controlled within the company. However, the most successful system are those that encourage employees involvement even in the design process. Through this, employees are well aware of their expectations, and, therefore, they work to ensure that the primary goals that have been set have been achieved. However, to ensure that gainsharing is evenly distributed in the company, there is always a reserve fund that is meant to fund the process even in cases when the company is not profitable enough to meet those needs. Due to the nature of the gainsharing systems, they can primarily be implemented in standalone or single-site organizations.
Background
Gainsharing has been in use since the 1930s and has been adopted by companies across the globe. This revolves around the need to ensure that the workers can provide the solutions needed by the company to succeed. The main idea behind the gainsharing systems was based on the need to involve employees in decision making, especially on how they can be able to manage costs and reduce the wastes within the company. This dates back to the period where the Scanlon Plan was launched and named after the founder Joe Scanlon (Collins, 2018). The idea, in this case, was to make sure that there was a way to calculate the gains and that every person had access to those gains. The development and the use of the Scanlon plan were instrumental in making sure that all employees in a particular organization had access to the gains that the company had realized and were awarded from their improved performance. On the other hand, the evolution of gainsharing created a platform where equality within the organization would be achieved, which was a shift from a system that would only reward a number of employees. Also, gainsharing was founded on the premise that every person within the organization had an input to the success of the organization. Therefore, it was only necessary to ensure that every person was rewarded accordingly. Thus, through gainsharing programs, the companies could appreciate the employees and theinput they have made towards attaining the set goals (Wren, 2009).
The development of gainsharing creates an environment where the emotional and financial contribution of the employees is considered. At times, companies often provide financial shares that help in fielding their long term development and the ability to deal with the challenges they face daily.This is important as it helps in making sure that employee’s motivation has been consolidated,considering that they feel that their efforts should be rewarded in the long run. Even though this is the case, gainsharing can change from one company to another based on the requirements and the business environment that one is exposed to (Kim, 2005). Therefore, the use of gainsharing is a group incentive given that it focusses on remunerating every employee within the company.
Gainsharing systems
The main gainsharing programs include Improshare, the Rucker plan, and the Scanlon plan.
Scanlon plan
Scanlon plan is the oldest gainsharing program that has been in use for more than eight decades. It establishes the connection between the productionvalues with the labor cost (Arthur, & Kim, 2005). This helps in creating the rightratio,which in the process helps in determining what needs to be used as the right ratio in the gainsharing process. The extra compensation as per the Scanlon plan, however, is determined by the ratio between the hourly wage and the number of workers in the productionprocess. For instance, if the employees produce 100 cars in three days with the cost of $50 per hour, then they will be paid more if theyproduce 150 cars in threedays at the same cost of labor. As a result, employees are likely to be motivated to produce more cars within a shortperiod, given that they get paid more. This is important as it helps employees in carrying out their duties and responsibilities within a short period. In typical cases, employees may be reluctant to produce more, especially in cases where they can pay little with no incentives. Therefore, this method is essential as it helps in making sure that employees can produce more and, at the same time, improve their efficiency (Hietpas, 2008).
The Rucker Plan
The Rucker Plan, on the other hand, relies on the quality of the output. This is a shift from the Scanlon plan, which mostly focusses on the quantity as the necessary measures of the output of the employees. One of the main issues in the production process is the focus on the quantity, which may motivate the employees to produce substandard goods given that the organization mainly focusses on the quality of production. This concentrates on production that centers on the manufacture of the products with the least materials as possible (Hietpas, 2008). Therefore,if employees can produce products while minimizing the amount of waste, then such employees are remunerated higher. The parameters that can be used in measuring the output of the employees include the return inwards, which means that the ability to reduce the defective items determines the changes in the quality of company products. However, both the Rucker and the Scanlon plans often focus on the strategies that help in making sure that the company’s profitability increases. The company profitability can either be increased by the increase in production as well as waste reduction. The Rucker and Scanlon can be used differently depending on the type of industries and the nature of the products that the company deals with.
Improshare plans
Improshare plans, on the other hand, rewards the employees based on their efficiency in the production and therefore uses similar determinants when compared with the Scanlon Plan (Hietpas, 2008).However, the main difference is that Scanlon focuses on labor costs, whereas the Improshare plans focus on the production hours.
Workers’ ownership
Workers’ ownership, on the other hand, focuses on the system that has the capacity to remunerate employees by awarding them equity shares in the company. However, the employees are awarded equity shares based on what they can achieve and how they are able to achieve them (Arthur & Huntley, 2005).
Employees are often encouraged to work innovatively or creatively in the workplace. This primarily focusses on aspects such as employees’ involvement as well as the bonus calculations, which helps in determining employee’s individual benefits(Kim, 2005). Gainsharing systems are vital, given that they are group-oriented and not individual-focused. As a result, this helps in laying down the long term strategies given that group cohesiveness helps in making sure that the long term goals have been achieved (Collins, 2018). One of the main aspects of the gainsharing systems is the focus on the employees’ involvement. It focusses on the need to share the gains with the company employees and therefore helps in promoting group work in the process (Wren, 2009).
Gainsharing systems are implemented in order to increase the success rate in the company, ensure that managers are more responsive, increase the involvement of the employees, be more flexible, consolidating resources and knowledge within the company, cost reduction, and focus on the quality of the company operations (Arthur, & Kim, 2005). However, gainsharing systems can be implemented by both successful companies as well as poor performingcompanies. While the poor performing companies often focus on improvement, better-performing companies often focus on retaining a competitive edge in the market. Better performing companies often rely on the gainsharing system to focus on continuous improvement and ensure that employees have common goals. This is also important given that it creates a system where the company can promote fairness in the sharing process, which helps in promoting teamwork in the process. Therefore, gainsharing systems are beneficial to both the employees as well as the organization in the long run. The benefits generated by the organization from the gainsharing system include increased employee involvement, increased flexibility in the organization, linking the performance with the rewards, improved problem-solving techniques, and the ability to reduce costs and improve the company performance. Even though gainsharing systems are more group-oriented systems, they help individual employees, given that an increase in the company productivity helps in enhancing job security.
Advantages of the gainsharing systems
Gainsharing systems are vital, given that they help in enhancing positive approach, pride, and morale within the company (Wren, 2009). The employees are likely to perform better if they are well aware that their work and responsibilities are appreciated. Through the gainsharing process, the organization often creates an environment where it enhances the positive change and encourages employees to improve in their day to day activities. Through the gainsharing systems, the organization is often cultivating a culture of cooperation, teamwork, and more involvement. This largely centers around the need to introduce a program with the capacity to create awareness within the company and, in the process, helps in making sure that they are focused on the set goals. Given that the gainsharing systems often advocate the employees and the company management to focus on continuous improvement, which is a critical culture to establish in any company. Furthermore, when a well-functioning gainsharing system is developed, the organizational, as well as the employees’ goals, are often aligned (Hietpas, 2008).
Demerits of the Gainsharing systems
Even though the gainsharing systems are often encouraged, they may be detrimental to the company, especially when the company profits have negatively been affected. Companies often make the necessary gainsharing even with the decrease in profits, which in the long may adversely affect the shareholders’ returns. Other significant issues with the gainsharing systems are that it disregards the merit of individuals given that they are often awarded based on the group performance. Therefore, if the group performs better, then the gainsharing strategies are put in place and vice versa. However, the success of the gainsharing systems best work in an environment which advocates for the use of collaboration and teamwork considering that the system advocates for the group systems form of remuneration. However, the system requires company management to be actively involved in the decision-making process and that they provide critical information to the employees in a timely manner. Furthermore, this creates an environment where the employees develop a feeling that they have financial interests in the company (Arthur & Huntley, 2005).
Future issues that may arise
In the demerits section above, I have identified the weaknesses of gainsharing. Two major issues stand out. There is the issue of disregarding the merit of individuals given that they are often awarded based on the group performance.Secondly, gainsharing may be detrimental to the company in the sense that companies still make the necessary gainsharing even with the decrease in profits, which in the long may adversely affect the shareholders’ returns. In my opinion, these two problems will be vital in determining the future issues or trends in gainsharing.
I am of the opinion that in the future, companies may focus on revamping the benefits of gainsharing but, at the same time giving credit to individual contributions. I think that this move will be crucial for practical reasons, in the sense that for any gainsharing program to be successful, there is a need for individual employees to commit themselves to the set goals. In as much as gainsharing programs are centered around the collectiveness of employees, it is vital to note that these groups of employees are made of individuals. If by any chance, two or three of these individuals are not contented, they can cripple the entire gainsharing program.
Also, there might be the possibility of companies making it difficult for employees to reach performance goals to cut down the costs that result from gainsharing. In some cases, gainsharing affects the companies’ returns because companies still make the necessary gainsharing even with the decrease in profits. Therefore, to combat this situation, companies may be forced to make it difficult for employees to reach performance goals. This may work out for the companies because most of the time, gainsharing programs are internal issues that are not exposed to the outside world where organizations like workers’ unions fight for the rights of the employees.
In addition, I think that companies will adopt a multi-faceted reward system to take care of individuals who do not support the collective approach for determining employee bonuses. The current gainsharing systems like Scanlon, Improshare, and Rucker use efficiency as the means of determining the employees’ bonuses. The multidimensional criteria may have minor categories like meeting deadlines, customer satisfaction, cooperating with other departments, quality, and innovation. These criteria tend to narrow down on specific employees in specific areas of the company and consequently rewarding them for their individual contribution in their respective sectors.
Conclusion
Gainsharing systems are group-oriented and may differ from one industry to another. The nature of organizational operations and the employees’ roles and responsibilities affect the type of gainsharing systems used. However, a gainsharing system is more effective in the environment where group work or teamwork is promoted. The success of any company, in this case, relies on the implementation process and the ability of the company to follow through with the gainsharing systems. Gainsharing systems are different from the profit-sharing systems in that gainsharing main focus is on the group-specific performance while the profit sharing focus on the overall profitability. However, they are both important in achieving employees’ motivation. The gainsharing systems help in encouraging employees’ participation and involvement, which in the process helps in improving their performances. Therefore, employees can benefit, given that they often receive their share from the profits that they have generated in the organization. On the other hand, gainsharing systems help in managing materials, energy, time, and in the process, improving the overall performance, given that this helps in encouraging them to perform better.
References
Wren, D. (2009). Joseph N. Scanlon: the man and the plan. Journal of Management History.
Arthur, J. B., & Huntley, C. L. (2005). Ramping up the organizational learning curve: Assessing the impact of deliberate learning on organizational performance under gainsharing. Academy of Management Journal, 48(6), 1159-1170.
Kim, D. O. (2005). The benefits and costs of employee suggestions under gainsharing. ILR Review, 58(4), 631-652.
Hietpas, P. C. (2008). Financial analysis of the implementation of a gainsharing plan in a construction firm.
Arthur, J. B., & Kim, D. O. (2005). Gainsharing and knowledge sharing: the effects of labor-management cooperation. The International Journal of Human Resource Management, 16(9), 1564-1582.
Collins, D. (2018). Gainsharing and power: Lessons from six Scanlon plans. Cornell University Press.
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Literature
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Finance
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
Computer science
Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!
Psychology
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
Nursing
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Sociology
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
Business
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
Statistics
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Law
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
Reasons being:
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY!!!
